Let me share something a friend sent me in my office.
Realtors have always been on the front lines of America's economy.
Our businesses have enjoyed the fruits of past successes but are now faced paying for decisions made by your elected representatives.
The national media has been in hyper drive for the past year repeating over and over certain issues but totally ignoring others.
One issue that has been the catalyst to the housing and mortgage crisis that has negatively affected our business more than 9-11 and has destroyed the lives of countless families goes almost unnoticed. Below is an article I wrote based upon hours of research and can easily verified.
History is too often repeated and change is needed. It is imperative you know who are really responsible for the crisis we find ourselves in. With our businesses and the welfare of our families on the line I feel that everyone needs to make informed decisions for our futures, our families futures ands our customers futures.
Who is REALLY responsible for the Financial Crisis we are paying for?
The real facts surrounding the mortgage crisis. Technology has sealed the words of the real players in time through the archives of the new media. The internet is full of information and facts from senate and congressional hearings as well as interviews. You Tube is loaded with visual recordings of hard-line liberals threatening anyone who would dare expose or stop their efforts to buy the vote of people, especially minorities.
In October 1992, 15 years before the housing meltdown and sub prime crisis, Rep. Jim Leach of Iowa was on the floor of the House, warning of the potential danger that Fannie Mae and Freddie Mac posed to the economy. He warned that Fannie and Freddie were changing "from being agencies of the public at large to money machines for the stockholding few." Rep. Barney Frank in the House and Sen. Chris Dodd in the Senate, Congress openly defied anyone to challenge their assertions that everything was running fine at Fannie and Freddie, they instead doubled Fannie Mae and Freddie Mac's risks. The Democrat-led Congress reduced capital limits on the two mortgage lending giants, letting them use enormous leverage to 2.5% of assets at Fannie and Freddie, vs.. 10% for banks to expand lending to low-income, minority communities. Things began OK, there were actually a couple of things that actually helped the minorities on being requiring validation for lenders rejections. The revisions also brought out greater RESPA oversight of such crimes against society as title companies paying for Realtor open houses and giving gifts of appreciation to anyone in real estate.
Way back in April 2001 the administration's budget stated that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large government-sponsored enterprise GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."
In May of 2002 the President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
In February 2003 the Office of Federal Housing Enterprise Oversight (OFHEO) released a report explaining that "although investors perceive an implicit Federal guarantee of government-sponsored enterprise, GSE obligations, In September of the same year Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations. In October Fannie Mae disclosed a $1.2 billion accounting error.
In 2004 President Bush's annual Budget again highlighted the risk posed by the explosive growth of the government-sponsored enterprises and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSE slack sufficient power and stature to meet their responsibilities, and therefore should be replaced with a new strengthened regulator." a new first class regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04) (2005 Budget Analytic Perspectives, pg. 83)
In April 2005 Treasury Secretary John Snow repeats his call for GSE reform indicating the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)
May 25, 2006, on behalf of the Federal Housing Enterprise Regulatory Reform Act of 2005 (via Beltway Snark) John McCain predicted the collapse of Fannie Mae and Freddie Mac, along with Bear Stearns and AIG. He criticized the falsification of financial records to benefit executives, including Franklin Raines and Jim Johnson, both of whom work as advisers for the Obama campaign! McCain also noted the power of the Democrats lobbying efforts to prevent ANY oversight of their business practices.
July 2007, Two Bear Stearns hedge funds invested in mortgage securities collapse. President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)
December 2007, President Bush AGAIN warns Congress of the need to pass legislation reforming GSEs saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. He called on Congress to pass legislation that would strengthen independent regulation of government-sponsored enterprises. The GSE reform bill passed by the House earlier this year was a start. But the liberal led Senate never acted. (President George W. Bush, Discusses Housing, The White House, 12/6/07)
February 2008, Assistant Secretary David Nason again reiterates the desperate need to reform saying "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March 2008, The President called on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. You need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April 2008, The President urged Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. Congress must do what will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May 2008, President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further. "Americans are concerned about making their mortgage payments and keeping their homes." Yet Congress has failed to pass legislation He repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08) "[T]he government ought to be helping credit-worthy people stay in their homes. And one way we can do that. Reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)" Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub prime loans." (President George W. Bush, Radio Address, 5/31/08)
June 2008, As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
Finally in July 2008 President Bush publicly called for GSE (government-sponsored enterprise) reform 17 times before Congress acted! Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the liberal legislative maneuvering of those who emphatically denied there were problems.
Finally after 17 separate efforts to correct the grave errors of the financial markets Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing. TOO LITTLE TOO LATE!!!!!!
While all this was going on, the head of the Senate Over site Committee was the largest recipient of campaign funds and a junior congressman from Illinois was the second largest recipient of campaign funds from Freddie Mac and Fannie Mae.
The saddest reality is that so many people bought into the scam and now millions of American families are facing the loss of their homes, their cars, their American dream all because of a lack of true understanding of capitalist market driven society. The end result is that there is a massive wedge of distrust between races and economic classes. And the very people who were suppose to have been helped are now suffering the most from these reckless manipulations to the housing and financial industries.
One last little ditty, certain Hedge fund investors are making BILLIONS from YOUR LOSSES AND SUFFERING!!
In spite of the main stream media's attempt to hide the facts from you need to know the truth. May God be merciful upon us and give us what we need instead of what we deserve.
I have sent this e-mail as just a fellow Realtor and not as a representative to anyone PERIOD! I care about you and your businesses and I am sick about what is being held back from us. If these truths have offended anyone, I apologize. Jeff
... an example of what I'm talking about.
